The National Anti-Profiteering Authority (NAA) has imposed a penalty on M/s Mahindra Lifespace Pvt. Ltd. as it did not provide completed benefits of ITC (Input Tax Credit) 
The issued was raised by the applicant, S. Ganapathi Subramanian, who was interested in purchasing an apartment in the project from Mahindra Lifespace Pvt. Ltd. The applicant raised the issue that the company did not pass on the benefit of ITC accrued to him, after the implementation of GST (Goods and Services Tax) and would have resulted in a reduction of the price of the apartment. The authority found that the company had availed the GST credit but did not transfer the benefit to the buyers. The buyers had every right to receive the benefit of reduction. The company was found to have contravened the provisions of Section 171 of the CGST Act, 2017.
The report of the authority found that the company was supposed to transfer the benefit of ITC (7.6% as received by the company) to the buyers but denied to do so. Not only that, but the company also increased the price of the flat to 129% to avail the benefits of 7% ITC, contravening the rules under Section 171 of the CGST Act, 2017.
So, the authority imposed a penalty according to Section 171(3A), read with Rule 133 (3)(d) of the CGST Act, 2017 
